This statement shouldn’t startle you. The reality is that most enterprise applications are well on their way to being cloud-based. We’ve seen it with simple workloads such as HR and payroll, travel and expense management, and in the last decade, we’ve seen the cloud as the new normal for customer relationship management (CRM) deployments.
This track record of success for cloud-based enterprise applications has brought us to the cross- over point in the deployment mix. The cloud has rapidly established itself as the preferred and default deployment environment for companies of all sizes. Today, clients (and we, Data V Tech) presume that the next enterprise resource planning system (ERP) deployment is more likely to be cloud-based than legacy (i.e., on-premises.)
Clients who have already made the leap to the cloud (with their ERP or another enterprise workload), already know the answers to the “why cloud?” question are overwhelmingly compelling and undeniable. But for others who haven’t yet benefited from the cloud, questions remain—along with some occasional reluctance to embrace this change. After all, they ask, if the legacy model of ERP deployment (where end customers buy the software and the hardware upfront, then pay services staff to integrate it all, then pay even more to maintain and upgrade it) was good enough for the last three decades, what’s changed in the last 10 years?
It is important to understand that this conversation is not just about technology, nor is it just about economics (though the technical and economic cases are both compelling.) Upgrading to the cloud means retiring your old approach to business management applications and no longer having to procure, install, maintain, and manage IT systems. And perhaps most compelling is the opportunity to redefine your business processes to leverage the cloud.
It’s not just us. Nucleus Research found in a 2015 survey of more than 100 companies that “customers were able to achieve substantial benefits, including reduced IT costs, increased employee productivity, and better inventory management” with a cloud-based ERP deployment. Cloud deployment has become the new norm.
“[…]Being locked into a specific deployment and usage format can severely limit the ability to manage the business, and therefore the firm’s competitive abilities.”
Epicor recognizes that your ERP system doesn’t exist as an island, and we provide clients the technologies they need to integrate with their other enterprise systems, including Epicor Service Connect, web services interfaces, large-volume data management tools, and real-time application program interfaces (APIs).
“Organizations with SaaS ERP spent exactly 100% of their ERP implementation budget on implementation, compared to organizations with on-premise ERP that went 12% over budget.”
SaaS and Cloud ERP Observations: Is Cloud ERP Right for You? Aberdeen Group December 2012